When you come into a windfall of cash, it’s easy to think only of ways to blow your money. There are so many things that you can and should spend money on, like healthy groceries. Unfortunately, many people spend based on their wants and end up just blowing their money. Avoid spending money on these things.
[Read: A Detailed List of Common Money Mistakes]
Buying new technology
It would be awesome to be able to get brand-new technology the moment it’s released. Being behind the curve could make you miss out on new things. Technology can be buggy and quickly depreciate. If you can wait six months to a year to buy new gadgets, you can avoid throwing away your money and save big bucks.
Buying designer clothes
Advertisers constantly push the idea that clothes make a person better. That is hogwash. Designer clothes and regular clothes are made in similar factories and usually have similar quality, meaning you are wasting your money on a brand name. Check your local thrift store or a yard sale to find cheap designer clothes.
Getting plastic surgery
Plastic surgery may seem like a way to better you, but it’s extremely expensive. Wasting your money on Botox or laser eye surgery might feel like an investment, but it’s not something you need when you’re almost living paycheck to paycheck. Sometimes plastic surgery is medically necessary. If your problem is only physical, you can find less expensive ways to love your body.
Getting a brand new car
Buying that sweet ride is something you’ve fantasized before you could drive, and now you have the cash for a down payment. Hold on! Those shiny new wheels could be costing you more in the long run. Its worth drops the second it leaves the lot, wasting thousands of hard-earned dollars. Even a dirt-cheap car will do this if you buy it when it’s new. Buying a reliable used car is far more practical.
Buying a house
A house is something you need to survive, but “necessary” does not mean “something to blow your money on”. A mortgage is one of the largest loans you’ll have in your life. If you default on it, you could end up on the street. It can be difficult to reconcile not having your dream home, but putting your dreams aside can save you millions. You may not end up living in the biggest house or the most beautiful neighborhood, but you’ll have more money for other opportunities.
Redecorating your whole house
Renovations are extremely exciting projects. They enable you to turn your “it’s okay” home into the home you always wanted. New furniture, appliances, and fancy light fixtures can cause you to waste your money. Take time to think about what you really want out of your home makeover and how you can make that happen. Adding a mirror to a room can make it seem as open as knocking down a wall.
Getting a hobby
All work and no fun can be fantastically boring. Signing up for the gym, the ski hill, and the season-long water park pass can feel like great ways to get away from the harsh workweek. These things are only cost-effective if you know you’re going to use them. Otherwise, your money is wasted. If you drop out of the gym one month after buying a yearlong membership, you lose 91.7% of your payment. You may have been more entertained setting the money on fire.
Eating out regularly
Everybody needs to eat. How can that blow your money? Most of the time, the waste comes in the form of eating at restaurants. Your money is going to ingredients, preparation, bringing the food to you, and cleaning up after you. When you make your own food, you’re only paying for ingredients. There are thousands of videos online that can help you learn to make your own food in less than half an hour. You don’t have to cook like Gordon Ramsey – you can cook like Gordon Ramsey at age five.
Traveling around the world
Everyone needs to get away from it all sometimes, but unconscious spending can get away from you when you’re out of your regular environment. Food, souvenirs, travel, and hotels can all cause you to blow your money on a few weeks of fun. Set a budget before you leave, and be selective about what you’re going to do when you get there. You don’t need to see a Broadway show every night you’re in New York City. It’s entirely possible to make memories without breaking the bank.
Treating your kids to everything
No parent wants to deprive their child of experiences during their formative years. They’ll shell out for new clothes, lessons, after-school activities, tutors, and camps to guarantee little Bobby and Suzie have the best childhoods. However, this can overwhelm the child, stress out the parent, and cause the child to have unrealistic expectations about spending money. They will grow up to waste their money. Parents can turn budgeting into a family activity, making them choose between basketball or pottery classes and showing them how to have fun on a budget. The lesson will stay with the child for the rest of his or her life.
[Read: A Detailed List of Common Money Mistakes]
When advertisers ask us to spend more money every day, it may feel impossible to stop yourself from finding new and impressive ways to blow your money. By creating a buget and sticking to it, you can manage to save. You might have to resort to consolidation loans or skipping something you enjoy to save money, but don’t think of it as a bad thing. Think of saving like climbing a mountain. It may be long and challenging, but when you get to the top, you have a beautiful view.